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Letters to the editor, November 6

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Denton Record-Chronicle Readers

Vote for Proposition 2

I am writing to encourage Texas citizens to vote "yes" and pass Proposition 2 on Nov. 7. As the former commissioner of the Texas Department of Savings and Mortgage Lending, I believe this proposed constitutional amendment contains four important changes to better serve the needs of Texans:

First, Proposition 2 will enable the refinancing of a home equity loan as a regular refinance under certain circumstances, which means Texans can enjoy more favorable mortgage pricing.

Second, Proposition 2 lowers the current 3 percent fee cap on charges to 2 percent and removes certain appraisal, survey and title fees from the calculation.

That will increase access to smaller-dollar home equity loans, allowing more Texans to use their equity as a financial tool.

Third, Proposition 2 makes agriculturally exempt properties eligible for home equity loans, removing a current prohibition hindering certain rural Texans' ability to access their home equity.

Finally, Proposition 2 increases flexibility for home equity lines of credit. That would enable Texans to borrow up to 80 percent of the value of the property (after taking any liens into account), regardless of whether the draw is taken at the inception of the loan or later when the borrower has a special need for the cash.

Proposition 2 increases flexibility for Texans who want to access their home equity. Please vote "yes" on Prop 2.

Doug Foster, 

San Antonio